Answer:
The long term capital gain= $30000-$25000
The long term capital gain= $5000
The basis in stock will be zero after the distribution.
Explanation:
Step 1 of 3
Tax treatment of amount distributed to shareholders:
The amount received as distribution to a shareholder under S Corporation is equal to the cash and fair market value of property distributed. The distribution is considered as tax-free to the limit that it does not exceed shareholder’s basis in the company’s stock. Any amount received in excess of basis will be treated as capital gain.
Step 2 of 3
However, taxation depends whether S Corporation has ever been a C Company or it posses’ accumulated earnings and profits. If it was never a C Corporation or doesn’t holds AEP then distribution equals to basis of share in S Corporation is a tax free gain for shareholder. Gain over and above basis is taxed as capital gains.
Step 3 of 3
In the given problem, C is a shareholder in S Corporation. He receives $30,000 as cash distribution. His basis in stock is $25,000. The distribution up to basis of stock is tax free distribution and above that is charged to capital gains. It is as follows-
Thus, capital gain of is taxable in hands of C. His basis in S Corporation will reduced to zero as entire distribution is over and above basis of his stock.
Answer:
¥114.96/€
Explanation:
An intermarket arbitrage opportunity is the act of exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market. Trading in foreign exchange takes place worldwide, the major currency trading centers are located in London, New York, and Tokyo.
In the given question, if you reverse all three exchange rates by calculating 1/rate (change yendollar into dollaryen and so forth), the choice that represents the required opportunity is ¥114.96/€
Answer:
5.5%
Explanation:
The underwriting spread = $0.66 per share
the percent underwriting spread = ($0.66 / $12) x 100 = 5.5%
The underwriting express is the fee that the underwriter of the stock (usually an investment bank) will charge the company for carrying out the transaction, either an IPO or simply issuing more stocks.
Answer:
The research report must have the following attributes:
- Easy to read and prepared in very simple language
- A good report must outlay all arguments and results, facts, and arguments in a way that aligns properly with the objective of the report
- the report must be prepared on time
- It must be straightforward. The presentation must be very well articulated, properly spaced, aligned using very clear font types.
Cheers
Answer: Leading function
Explanation: In the leading function of management, the mangers tries to influence the behavior of its subordinates to motivate them so that they work efficiently to achieve organisational goals. This function focuses on employees participation and motivation.
Thus, the quoting of George steinbrenner is an example of leadership as he is motivating others in the organisation.
